Charlotte Luxury Market Report – 1st Quarter
The Charlotte regional luxury market saw unusual conditions to start 2019. As we commented at year end, showing demand remained higher than the 4th quarter of 2017, indicative of plenty of demand. As December started, the stock market and Federal Reserve issues tamped down the willingness for some buyers to proceed into offering contracts. As the first quarter swung into February, reduced mortgage rates and a return of more stable financial markets propelled buying activity in all 3 luxury price ranges, with the mid-market segment riding lower interest rates and the luxury and ultra- luxury markets being powered by corporate performance and relocation to the region for more expensive property value markets.
SouthPark similarly saw lower sell thru yet higher end of quarter pending activity with 58 luxury closings 1st quarter vs 72 last year, yet 86 homes pending including a very strong 10 ultra luxury pending contracts on homes listed over $2 million. The region saw several flagship Investor Jackson | Christie’s deals, including the regions highest 1st quarter clouting, a $3.8 million dollar home in gated Greenwood, along with another in Seven Eagles. With 76 active listings over $1 million with another 26 under pending contracts in the SouthPark area, conditions are fairly balanced for buyers and sellers, with 21 homes available in the ultra-luxury range.
SouthPark Q1 Homes Sold & Showings
LISTINGS SOUTHPARK SOLD SOUTHPARK
Myers Park & Eastover
Closings in Myers Park and Easter were roughly flat compared to the first quarter of 2018 with 23 closings versus 24 last year. That said, an explosion of showing activity as the quarter ended has led to a major expansion of homes with pending contracts, particularly in the $1 million to $2 million range, where showings were up 75% and a whopping 28 homes went under pending contracts. The ultra-luxury range also double its showing rate and saw 12 homes pending going into the 2nd quarter listing over $2 million in price. Active inventor in million dollar plus range stood at 66 homes for sale, yet 40 more were under contract pointing to less than 6 months inventory.
Myers Park Q1 Homes Sold & Showings
Listings Myers Park & Eastover
Lake Wylie & Palisades
The Charlotte side of Lake Wylie showed moderate growth in closings for the first quarter in the luxury range with 53 luxury homes closing vs 51 in the last year’s first quarter. Like other areas, the mid-market segment between $500,000 and $1,000,000 in list price saw a large increase in pending contracts as buyers jumped in to take advantage of declining mortgage rates. Active inventory stood at 136 listed luxury homes with 86 more under contract, very healthy conditions.
Lake Wylie & Palisades Q1 Homes Sold & Showings
Providence, Weddington, & Waxhaw
The Union County area of Waxhsaw and Weddington saw the impact of the 4th quarter slow down as sold units in both the mid-market luxury segment below $1 million and the luxury range over $1 million saw a fairly significant decline in closings the first quarter. Like many other areas, however, a flurry of showing and contractual activity resulted in there being 88 pending in the mid-market range and 18 more over $1 million, which will make for a great second quarter. Showing momentum jumped ahead of last year’s spring showing requests by 18%, pointing to continued demand. Union County tends to be less landlocked and thus absorption rates remain at over 6 months inventory firmly balanced conditions.
Providence, Weddington, & Waxhaw Q1 Homes Sold & Showings
Ballantyne & South Carolina Q1 Homes Sold & Showings
Closings in the border communities of upstate SC and Ballantyne area saw a slight dip in the first quarter compared to last year, with 45 closings vs 51 last year, with another 63 homes going pending as the quarter ended, including 7 homes listed over $1 million in value, a solid showing for this area heading into the spring market. Showings nearly tripled in the million dollar range, and the 2nd warted begins with 63 homes pending and active inventory of 143 listings, representing a slightly higher absorption period than some other areas, albeit some areas moving faster than others.
Ballantyne & South Carolina Q1 Homes Sold & Showings
Ballantyne & South Caroline Sold Homes
Charlotte Market Forecast
The momentum from the finish of the first quarter has clearly carried over into the 2nd quarter. Showings in Charlotte powered ahead last year’s trailing 60 day period, which points to a significant increase in closing performance in comparison to 2018’s summer period . While there were some signs of slow down in the 4th quarter that many of our competitors thought were leading to a slow down, the showing performance continued to point to high demand, which continues to drive the Charlotte market. The most recent trailing 30-day showing trend shows a whopping 25% increase over last year, which should drive the market through a very strong summer and early 3rd quarter.
There are issues which could create headwinds, a lack resolution on US/ China trade relations, as well as the chaotic state of the UK’s situation with the European Union could both serve as jolts to the economy with Europe already experiencing slower growth in some key areas. Beyond that looms a presidential election year in the U.S. which has historically yielded solid results the first half and tapered as election angst kicks in during the fall. Overall, very strong current conditions in most price segments and areas, with momentum that should carry into the third quarter.